Arkema swings to net profit in second quarter

MOSCOW (MRC) -- French chemicals specialist Arkema said it swung to a net profit in the second quarter and said it aims to post strong results for the rest of the year despite deteriorating market conditions in its home country France, said The Wall Street Journal.

"Market conditions in Europe are challenging, in particular in France where growth prospects have deteriorated since the end of last year and where the group continues to consider ways to improve its productivity," Thierry Le Henaff, Chairman and CEO, said in a statement.

In this environment, Arkema should achieve in the second half of the year an EBITDA similar to the record level of the second half of 2012. Compared to 2012, the third quarter EBITDA should be lower than the high reference of last year and the fourth quarter stronger.

Arkema continues to implement its focused growth strategy with several progresses and confirms its ambition for 2016 to achieve EUR8 billion sales and 16% EBITDA margin while maintaining gearing below 40%. Sales in the second quarter fell 5.2% to EUR1.63 billion from EUR1.72 billion in the same period last year.

Net profit in the first half totaled EUR112 million compared with a loss of 12 million in the same period a year ago. EBITDA fell 11% to EUR273 million from EUR306 million.

As MRC wrote before, Arkema announced a comprehensive range of PEKK (Poly Ether Ketone Ketone) ultra high performance polymers comprised of three families of products whose properties meet the requirements of aerospace, oil exploration and electronics applications.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc. As MRC reported previously, Moody's Investors Service had upgraded Arkema S.A.'s senior unsecured rating to Baa2 from Baa3. The outlook on the rating was changed to stable from positive.

MRC

MOSCOW (MRC) - The capacity of caustic soda market in Russian fell by 2.6% in the first half of the year, year on year and totalled 467,000 tonnes, according to MRC Monthly Report.

The decline in Russia's caustic soda consumption in line with reduction in production volumes. Production of caustic soda in Russia in January-June 2013 totalled 527,300 tonnes, down by 3% year on year.

The share of KAUSTIK (Volgograd), the largest producers of caustic soda in Russia, accounted for 22% from the total Russia's production of the material in June. The market share of KAUSTIK (Volgograd) in Russian market of caustic soda in the first half of the year accounted for 20%.

Russia's exports volumes of caustic soda have decreased on the back of the decline in production volumes. Russian exports of caustic soda in the first half of the year have decreased by 1% year on year and totalled 83,340 tonnes.

The capacity of caustic soda market in Russia amounted to 969,000 tonnes in 2012. The share of domestic producers in the structure of consumption of caustic soda exceeded 96%.

MRC

MOSCOW (MRC) - Five died and several injured following a Tuesday explosion at ammonia facility of Concern Stirol, one of the largest chemical producers in Ukraine, said Ukrainian media with reference to the producer.

According to an eyewitness, the explosion occurred during maintenance works at an ammonia reservoir.
Authorities have opened a criminal proceeding under Article 272 of Criminal Code of Ukraine - violation of safety rules during the execution of the work with increased risk.

The Prosecutor's Office at Gorlovka carries out a preliminary investigation. A serious fire at Stirol's facilities of amonia had also occurred on 26 May 2013. There were no dead or injured people in that accident.

Concern Stirol is the largest chemical producer in Ukraine. Stirol is a diversified company that produces ammonia, inorganic acids, fertilizers, medicines, paints, plastics (polystyrene) and finished PS products.
The company is part of Group DF, represented by holding OSTCHEM.
MRC

MOSCOW (MRC) -- India's federal cabinet Thursday approved a proposal to sell a 10% stake in state-run fuel retailer and energy company Indian Oil, Trade Minister Anand Sharma said, said Hydrocarbonprocessing.

Shares of the company closed at 195.75 rupees on the Bombay Stock Exchange on Thursday. At this price, the government will be able to raise 47.5 billion rupees (USD786 million) from the offering.

The government currently owns 78.92% of the country's largest fuel retailer.

The share sale is part of the government's program to raise 400 billion rupees in the fiscal year through March 2014 by selling shares in state-run companies.

This revenue is key to India's plan to narrow its fiscal deficit from 4.9% of gross domestic product in the last fiscal year. India's wide fiscal deficit has pushed up market borrowing by the government in recent years, stoking inflation and reducing credit availability for private borrowers.

As MRC wrote before, Indian Oil Corp (IOC) is planning a Rs 30,000 crore refinery on the west coast in Gujarat or Maharashtra as part of its plans to raise the refining capacity to 100 mln tons. IOC has seven refineries totalling 54.2 mln tons and a 11.5 mln ton subsidiary - Chennai Petroleum Corp Ltd (CPCL). It so far has no coastal refinery, impairing its ability to process cheaper difficult crude oils. IOC is looking for sites for the new unit in Gujarat and Maharashtra. The company has been offered land by Adani Group at Mundra in Gujarat as well as by Shapoorji Pallonji Group in Saurashtra.

Indian Oil Corporation Limited, or IndianOil, is an Indian state-owned oil and gas corporation with its headquarters in New Delhi, India.
MRC